Tax measures in the 2026 coalition agreement

Individuals

• In 2026, the government will present a reform agenda that includes a review of the income tax system.
• The tax treatment of owner-occupied homes will remain unchanged.
• The tax burden on directors and major shareholders should be balanced.
• Long-term investments will be encouraged by developing the new box 3 system based on actual returns (capital accumulation system) into a capital gains system.
• The multitude of income-dependent tax schemes (heffingskortingen’) will be limited, starting with income tax credits.
• The deduction and the allowance for specific healthcare costs in the income tax will be abolished by 2028.
• Citizens will be required to pay a freedom contribution. This freedom contribution will be levied through a restriction on the annual inflation adjustment (‘tabelcorrectiefactor’’) in income tax in 2027 and 2028.
• The transfer tax rate for the purchase of homes that are not the buyers primary residency (such as a home for rental or a holiday home) will be reduced from 8% to 7% as of 2027.

Business and trade

• The government is opting for a fiscally stable business climate.
• The percentage of the Corporate Income Tax (“CIT”) will not be increased.
• The investment capacities of housing associations will be expanded through a CIT facility.
• Schemes that are important to businesses (but are often called into question) will remain unchanged. These include the 30% ruling, the innovation box, the business succession scheme, the rollover scheme for family businesses, loss relief, the participation exemption and the Research and Development (Promotion) Act (“R&D Act”).
• Where possible, the EIA, MIA and VAMIL will be merged into a single robust investment incentive.
• The R&D Act will be expanded for the development of AI and technology.
• The R&D Act and the work-related expenses scheme will be made less complex and the administrative burden will be reduced.
• Companies will be required to pay a freedom contribution. This freedom contribution will be implemented through an increase in the AOF contribution.
• The reduced VAT rate for the supply of ornamental plant cultivation products will be abolished with effect from 2028. As a result, the VAT rate for ornamental plant cultivation products will increase from 9% to the standard VAT rate of 21%.
• From 2030, a levy based on the sugar content in certain foods will be introduced for producers. This applies to foods with a sugar content of 6% or more. The tax applies to pre-packaged products, so that the sugar content of the product can be read from the label.
• Sustainable and responsible entrepreneurship will be encouraged by including the “stewardship company” in the law as a legal form for businesses.
• The government will invest in animal-friendly livestock farming through subsidies and tax schemes with a view to creating economic prospects for family businesses.

Employees and employers

• Start-ups and scale-ups should grow, which is why it should be easier to pay employees partly in shares (options). In addition, options will be expanded to provide financial employee participation in a tax-efficient manner.
• False self-employment will be tackled by splitting the draft Vbar bill and introducing a legal presumption of employment. The remaining part of the Vbar will be replaced by the Self-Employed Persons Act.
• The expatriate scheme remains unchanged.
• Employers will be given the opportunity to help employees repay their student loans faster through the work-related expenses scheme.

Energy, climate and mobility

• Electric mobility remains fiscally advantageous and the use of shared cars, bicycles and public transport is encouraged.
• The reduction in fuel excise duty (petrol) will be extended until 2027.
• A future-proof reform of car taxation based on the size of the vehicle tax is being considered, under the condition that car users are not disadvantaged.
• The government wants to focus on a European flight tax that is the same for all EU countries, instead of a national flight tax.
• To enable companies to invest in sustainability, the national CO2 tax will be abolished.

Next steps

The new minority government will further develop the tax plans into legislative proposals in the coming period. More details about the proposed tax plans are likely to be announced at that time. A majority will be required in both the House of Representatives and the Senate in order to implement the tax measures. The proposed measures may still be subject to change. We will keep a close eye on developments.

Do you have any questions about the possible consequences for you or your organization? Please contact your Forvis Mazars tax adviser.